Do I Qualify For An Offer In Compromise?
While an offer in compromise (OIC) can provide you with a viable method for resolving your tax liability issue, it is not a given that you will qualify for the relief it provides. The offer in compromise process requires that you first submit an application, provide 20 percent down payment of the amount offered, pay a filing fee and wait for up to one year to hear back from the IRS regarding your eligibility for OIC relief.
It is standard procedure for a “mill operation” to submit an offer (and collect its fees) without even doing the requisite analysis of whether you qualify. Accordingly, it is prudent to contact the Law Offices of Robert T. Leonard. We will advise you of whether you qualify and the likelihood of success before you submit an offer in compromise.
How Does The IRS Determine Who Qualifies For An Offer In Compromise?
When the IRS analyzes your offer, it looks at a variety of things such as your income, expenses, equity, future earning potential and other factors that impact your ability to pay your tax bill. The IRS will then determine what amount of your assessed taxes it can reasonably expect to collect from you, and see if your offer is at least equal to that amount.
How Does My Choice Of Attorney Affect My Eligibility For An Offer In Compromise?
While your choice of attorney will not alter your financial circumstances, the right attorney can help you understand whether you qualify and what type of offer is likely to be accepted. Further, the IRS will likely not even consider an offer submitted by a “mill operation” because these offers are often not created by attorneys or custom-tailored to your specific situation.
According to the IRS Data Book (the IRS’ yearly statistical publication), as recently as 2013, only 42 percent of submitted OIC applications were accepted by the IRS. This was an all-time high for the agency, as the rate is usually closer to 25 percent. These rates highlight how difficult it can be to have an OIC accepted without the guidance of a tax attorney.
At the Law Offices of Robert T. Leonard, we not only help our clients submit OIC applications that have a high probability of being accepted by the IRS, but also help them understand whether there are any other options which can provide a higher degree of relief from their tax liability. Lawyer and CPA Rob Leonard will personally meet with you and spend the necessary time to provide an overview into the offer in compromise process as well as answer all of your questions.
Questions About Whether You Qualify For An Offer In Compromise? Let Us Give You The Answers You Need.
Call our Woodland Hills office at 818-224-7935 to arrange a free consultation. You may also contact us online. We serve clients across the United States, including California communities in the San Fernando Valley area.